Tue. Jul 23rd, 2024
Amount that Retired Individuals Actually Spend on Healthcare CoverageAmount that Retired Individuals Actually Spend on Healthcare Coverage

We don’t look forward to becoming older. It is, nonetheless, unavoidable. Even though retirement is a time when we may enjoy all of our savings from our careers, the promise of relaxation might be disrupted by health concerns and medical bills that beset humans in their old age. When you marry, you should plan for retirement to safeguard your partner from the uncertainties of life.

Senior citizen health insurance plans cover the treatments and operations for age-related disorders such as cataracts, heart/kidney problems, and so on, which can cost anywhere between Rs. 8,000 and Rs. 1,80,000. We must plan and save for such expenses before our earning season ends. Proper retirement planning in India is required to prepare for the worst-case scenarios once you reach retirement age.

All you need to know about financial advisor’s tips on the sum of retired individuals

  • To estimate post-retirement healthcare expenditures, one must first examine current costs. “Take an average of three to five years’ costs and add 10-15% to that sum yearly,” says certified financial advisor Arvind A Rao.
  • Then there are issues like lifespan, the risk of outliving the corpus, and worsening health as you age.
  • Examine your lifestyle to determine the diseases that may arise from it. Consider the probability of developing a hereditary condition as well. Remember to include your spouse in the computation.
  • According to financial advisers, one should begin working on a plan when they are 30-35. If you are a late starter and believe the premium is too excessive, the peace of mind that comes with purchasing a health plan is priceless.
  • “Even if you plan to retire in five to six years, purchasing senior citizen health insurance is a good idea so that pre-existing illnesses are covered when your employer’s coverage ends at retirement.” Choose top-up plans and critical illness coverage as well. “These increase coverage while lowering premiums,” says Suresh Sadagopan, chief financial planner at Ladder7 Financial Advisories.
  • Health insurance coverage covers hospital bills. However, it does not cover all of the costs. Most indemnity plans, for example, do not cover domiciliary therapy or preventive health care. Furthermore, pre- and post-hospitalization expenses are only covered up to a specified (typically 60-90) number of days. As a result, it is critical to establish a distinct corpus for paying such bills. “A general estimate is that every couple should keep aside at least Rs 15-20 lakh for post-retirement medical expenses,” Rao said.
  • The duration of the instruments, the expected return, and the investor’s risk tolerance will all influence their selection. For example, a public provident fund is a smart option if you have at least 15 years to retire. Consider a systematic investment in a balanced mutual fund if you have fewer years to retire and are willing to assume some risk.

How much should you save up for unexpected expenses throughout your retirement?

  • Your retirement budget will be determined by your post-career income and a general estimate of how much you would spend every month. While this may seem obvious, many adults are caught off guard and horrified when the reality of old age dawns on them if they did not acquire a retirement plan when it was ripe.
  • When it comes to a pension plan/retirement plan, you have numerous options to select from, and government employees and many semi-government agencies provide pensions that can pay retirees’ day-to-day needs.
  • However, this modest quantity may be insufficient in a medical emergency, so you must incorporate contingency expenses in your retirement budget. This quantity should be calculated with care, taking into account your lifestyle, any genetic disorders you may develop, and any pre-existing health concerns that your doctors have warned you about.
  • The healthier you have been, the less money you need to set aside for contingencies and health care costs. At the same time, a healthy lifestyle implies you’ll live longer – you’ll need to plan for a longer life expectancy, increasing the contingency budget.

Are There Any Health Insurance Plan Alternatives for Managing Medical Expenses?

  • Another standard error people make when planning their retirement is putting too much trust in their health insurance. Most health insurance policies exclude long-term care and allow limited healthcare spending after retirement. As people get older, they may develop age-related diseases with regular medication but might not necessitate hospitalization.
  • Generally, health insurance policies are designed to meet emergency hospitalization or surgery needs; they usually demand additional payments and drivers to cover the expenses of routine prescription medications and medication, which older adults typically require coverage for.
  • People who get ailments such as cataracts or face dental troubles are dismayed to learn that their health insurance coverage may not cover these charges; your contingency plan must account for such possibilities so that you do not have to pay these expenses.
  • It is also good to look into your family’s history to prepare you for any genetically driven problems you may get later in life. For example, if your family has a history of poor dental health, you can acquire a separate dental insurance plan that covers expenses such as root canals and tooth replacements.
  • It’s also a good idea to open a fixed deposit savings account to save money for future healthcare bills. However, one of the best methods to avoid these gaps in health insurance coverage is to enrol in a top-quality retirement plan that ensures your monthly income to prepare you for any healthcare eventualities that may arise.

Tax advantages on retired individuals’ health coverage

  • The products in your health portfolio provide tax advantages. A wise combination can save you a lot of money.
  • Health insurance premiums are tax-deductible up to Rs 15,000 (for those under 60) under Section 80(D). The deduction limit for senior folks is Rs 20,000. Preventive health check-ups are eligible for a Rs 5,000 discount (up to Rs 15,000).
  • Treatment costs for diseases such as cancer, kidney failure, and AIDS are deductible up to Rs 40,000 under Section 80DDB. For persons above the age of 60, the ceiling is Rs 65,000.


Any working person must begin planning for retirement early; a solid retirement and pension plan in India is essential for a retired individual’s financial portfolio.

By admin